We propose to develop compact magnetic resonance imaging (MRI) systems for imaging lungs as well as other soft tissue in live laboratory animals based on permanent magnets that are reasonably priced and easy to maintain. Such imagers will benefit public health by improving laboratory animal research. Unlike other soft tissues, lungs are difficult to image with MRI because the signal decays rapidly. However, good MRI will allow serial progression studies of diseases and treatment of live animals, eliminating the need to use a large number of animals. Furthermore, the statistics of the results will be more reliable in serial over parallel studies. New Mexico Resonance, the research institution of this proposal, has perfected the technique to make high resolution images of in vivo lungs using a large 1.9T superconducting magnet based MRI system. There are many reasons for wishing to perform small animal lung imaging in animal facilities rather than in MRI facilities. There are quarantine issues associated with not wanting to take animals out and bring them back into the animal facility. Furthermore, the animal researchers can make measurements at will. ABQMR, the submitting company, together with New Mexico Resonance, has worked with MRTechnology, a Japanese company specializing in permanent magnet based MRI. These MRI systems perform standard imaging capably and are compact, low cost, and maintenance free. This proposal will combine the technical expertise of lung imaging by New Mexico Resonance with the permanent magnet technology being used by ABQMR. The Phase I goal is to obtain high resolution in vivo pulmonary MRI with a compact permanent magnet. In Phase II, we will integrate the permanent magnet with compact electronics to create a prototype small animal imaging system. [unreadable] [unreadable] [unreadable]